1. Overview
1.1 What are the main trends/significant developments in
the lending markets in your jurisdiction?
The Cayman Islands continues to be a jurisdiction of choice for
the establishment of investment funds, portfolio investment
companies and corporate vehicles, each of which utilise secured
lending arrangements in a variety of forms. The robust and
creditor-friendly legislation in the Cayman Islands provides
counterparties with significant comfort in secured lending
transactions, which continues to make the Cayman Islands the choice
of jurisdiction for many financial institutions.
We continue to see an increase in the use of hybrid and NAV
facilities in both the private equity and hedge fund space. In
addition to hybrid and NAV facilities, we have also seen a
significant uptick in the use of investment fund holding entities
structured as orphan vehicles, as lenders are looking to address US
bankruptcy and consolidation concerns. Exempted companies
